<<

Official Residences of

2021 ASSET PORTFOLIO COND ITION REPORT

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 0

Table of Contents

Executive Summary ...... 3 1 Introduction ...... 7 2 Asset Portfolio ...... 9 2.1 Location ...... 11 2.2 Size of Asset Portfolio ...... 11 2.3 Age of Asset Portfolio ...... 12 2.4 Condition of Asset Portfolio ...... 13 2.4.1 Portfolio Condition Assessment Program ...... 13 2.4.2 Facility Condition Assessment ...... 15 2.4.3 Asset Priority Index ...... 18 2.5 Sustainable Funding ...... 21 3 Asset Report Cards ...... 24 3.1 ...... 24 3.1.1 Background ...... 24 3.1.2 FHBRO-Recognized Ancillary Buildings ...... 25 3.1.3 History ...... 29 3.1.4 Present Condition ...... 30 3.1.5 Historical Investments ...... 31 3.1.6 Proposed DM Investments ...... 34 3.1.7 Summary ...... 34 3.2 24 ...... 36 3.2.1 Background ...... 36 3.2.2 History ...... 37 3.2.3 Present Condition ...... 38 3.2.4 Historical Investments ...... 39 3.2.5 Proposed_Recapitalization ...... 40 3.2.6 Summary ...... 40 3.3 ...... 42 3.3.1 Background ...... 42 3.3.2 History ...... 43 3.3.3 Present Condition ...... 44

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 1

3.3.4 Historical Investments ...... 45 3.3.5 Proposed DM Investments ...... 46 3.3.6 Summary ...... 47 3.4 ...... 49 3.4.1 Background ...... 49 3.4.2 History ...... 50 3.4.3 Present Condition ...... 51 3.4.4 Historical Investments ...... 51 3.4.5 Proposed DM Investments ...... Error! Bookmark not defined. 3.4.6 Summary ...... 53 3.5 ...... 55 3.5.1 Background ...... 55 3.5.2 History ...... 56 3.5.3 Present Condition ...... 57 3.5.4 Historical Investments ...... 57 3.5.5 Proposed DM Investments ...... 59 3.5.6 Summary ...... 59 3.6 ...... 61 3.6.1 Background ...... 61 3.6.2 History ...... 62 3.6.3 Present Condition ...... 63 3.6.4 Historical Investments ...... 64 3.6.5 Proposed DM Investments ...... 65 3.6.6 Summary ...... 65 4 Summary and Next Steps ...... 67

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 2

Executive Summary

Canada’s six Official Residences—located in the National Capital Region, under the stewardship of the National Capital Commission—are national treasures. No six homes play a larger role in enabling the leadership of our Constitutional Monarchy, our Federal Government, our Parliament, our Official Opposition and our international relations.

Constitutional conventions, acts of Parliament and other legal instruments make them, first and foremost, homes to Canada’s official leaders1 while they hold office. As such, they have been host to many of the most significant events in Canada’s history. Combined with their unique architectural character, this makes them essential building blocks in Canada’s national pride.

This report lays out in detail the current state of these properties, under the stewardship of the National Capital Commission (NCC), after decades of deferred maintenance due to insufficient funding.

The NCC’s legislative mandate for the Official Residences is to:

“…maintain and, from time to time as required, improve those lands.”2

These Government facilities are also expected to provide safe and appropriate accommodations for Canada’s official leaders and serve as inspiring properties and grounds for the conduct of state events and ceremonies; that they are furnished, maintained and rehabilitated to safeguard their national heritage.

The six Official Residences in the National Capital Region (NCR) are:

▪ Rideau Hall: home and workplace to the Governor General of Canada ▪ : home to the ▪ Harrington Lake: the country residence of the Prime Minister of Canada ▪ Stornoway: home to the Leader of the Official Opposition ▪ The Farm: home to the Speaker of the House of Commons ▪ 7 Rideau Gate: home to official guests of the

These principal residences are supported by another 49 ancillary buildings, several of which are designated heritage buildings, such as and 10 Sussex Drive.

The NCC, led by its Board of Directors, plans, initiates and implements major works and capital investment spending decisions on Official Residences. This update to the

1 Appendix A lists the names of all the occupants since Confederation. 2 Official Residences Act, (1985) section 6

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 3

2018 Official Residences of Canada: Asset Portfolio Condition Report, presents the state of the Official Residences Portfolio (the Portfolio) managed by the NCC as of January 2021 based on an in-depth assessment of selected key assets,3 completed in early 2020, as well as the re-evaluation and adjustment of the 2017 data, published in the 2018 Report.

Approximately 75% of the Portfolio is over 50 years old, with 16% over 150 years old. Due to their age and current state, the Official Residences are currently the largest contributor of CO₂ emissions among the large number of assets under the stewardship of the NCC. Together they produce 60% of the NCC’s total emissions.

While the emissions performance of Canada’s Official Residences is of significant concern, the challenge this represents runs far deeper. Decades of underfunding—a lack of timely investment in the maintenance, preservation and renewal of these properties—have resulted in a growing deferred maintenance deficit and severely deteriorating asset condition. The overall Facility Condition Index (FCI) of 0.136 for the Portfolio makes this especially clear, indicating an overall condition of “Poor,” of which 22% of the Portfolio is in “Critical” condition.

The rate at which the buildings’ conditions are deteriorating due to underfunding will be explained in further detail throughout the rest of this report. As an illustration, since the 2018 Report, the NCC has invested approximately $26M in capital funding, including the rehabilitation of the Farmhouse at Harrington Lake, various upgrades to the Rideau Hall Monck Wing, the Ballroom plaster stabilization, and health and safety-driven Operations Zone redevelopment project.

Despite these investments, the cost of addressing the Portfolio’s original deferred maintenance deficit has increased to $89.1M (from $83M in the 2018 Report) and its FCI worsened. The Current Replacement Value (CRV) of the Portfolio has now reached $653.2M, up by $38M since 2018.

As indicated in the 2018 Report, without sustainable funding, the deferred maintenance deficit will continue to grow, and the overall deterioration of Canada’s Official Residences will continue.

The $89.1M deferred maintenance deficit in the current report, as was the case of the $83M in the 2018 report, refers to “the backlog of unfunded major maintenance and renewal projects that have been deferred to future budgets. It results either from an accumulation of neglected routine maintenance items which evolve into more serious concerns or from failure to carry out major repair or restoration projects on facilities which have reached the end of their life cycle or have become obsolete.”4 This value is a

3 The 14 buildings selected to be part of the update included the main residences, except for 24 Sussex since its condition is well known, and 9 other key assets. 4 2001 Standing Senate Committee on National Finance Report: The Role of the Government in the Financing of Deferred Maintenance Costs in Canada’s Post-Secondary Institutions.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 4 cost estimate for a “like for like” replacement or repair of the asset. It does not necessarily address new building codes or legislative requirements, such as the recently introduced Accessible Canada Act and the significantly revamped Federal Sustainability Act, nor does it include long-needed functional improvements. In other words, limiting investments to reducing the deferred maintenance deficit alone, as described above, would be insufficient to ensure the current portfolio of the Official Residences fully comply with all applicable codes and legislation.

Now that the opportunity exists to accurately account for the additional costs associated with new building codes, evolving legislative requirements, as well as the heritage conservation measures, which typically drive costs up, we can see a notable increase in the estimated cost of overcoming the deferred maintenance deficit.

By applying common industry standards and allowances for sustainability and universal accessibility (UA) requirements, soft costs, construction contingencies, cost escalations and risk management, it is now estimated that a one-time injection of $17.5M per year, over 10 years—for a total of $175M—is needed to close the deferred maintenance gap.

INVESTMENT PER YEAR OVER 10 YEARS Deferred maintenance $8.9M

Code and legislation compliance modernization, $8.6M including UA & sustainability Total $17.5M

The proposed investments would enable the NCC to pursue improvement opportunities, such as implementing sustainable best practices for building construction and renovation.

This would reduce the Government’s Greenhouse Gas (GHG) emissions and further contribute to the Federal Sustainable Development Strategy. As an example, the rehabilitation of Official Residences in critical condition, such as 24 Sussex Drive, would not only address key systems that are in critical need of replacement, it would also significantly improve the energy efficiency of these important properties located in the heart of Canada’s Capital. This would promote a clean environment for future generations and serve as an example for comparable projects around the world.

Investing in Canada’s infrastructure contributes to strong communities. As part of its broader Universal Accessibility Strategy and in compliance with the Accessible Canada Act, the NCC is developing a comprehensive strategy for the main building of Rideau Hall, which will serve to inform similar strategies for each of the Official Residences. The proposed investments will support the NCC in ensuring its programs and services meet the accessibility needs of all Canadians.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 5

These capital investments would be made over a 10-year period, with the 24 Sussex Drive project alone expected to take five years to complete, including consultations and a design process.

Once the Official Residences Portfolio’s immediate capital needs have been addressed, it will also be necessary to invest in a proactive level of maintenance designed to both protect the value of the properties and assure they continue to operate at optimal levels.

The Government of Canada’s Guide to the Management of Real Property indicates that the minimum level of annual investment needed to maintain real property in good condition is 4% of its replacement value.

Based on the CRV estimated at $653.2M, sustainable funding for the Official Residences Portfolio equates to $26.1M annually. This increase in annual appropriations, coupled with the one-time injection of $17.5M per year over 10 years, would provide a sustainable source of funding that would enable the NCC to comply with its legislative mandate to conserve the built heritage of national interest under the NCC’s stewardship and meet current building code and legislative requirements.

In addition to a long-term funding solution, predictable access to the residences is equally important for the NCC to undertake regular repair, maintenance and scheduled capital improvements. In the absence of either scenario, the NCC will continue to responsibly manage the residences with the limited resources available. However, significant recapitalization of the entire Portfolio within the next 5 to 10 years is unavoidable. Based on current practices, it would only be a matter of time before certain assets reach the same level of disrepair as 24 Sussex Drive.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 6

1 Introduction

The NCC’s mission is to ensure that Canada’s Capital Region is of national significance and a source of pride for Canadians. Over the course of the 2021–2022 to 2025–2026 planning period, three strategic directions will guide the NCC, as it delivers its mandate to continue building a dynamic, sustainable, inspiring and thriving Capital Region.

Furthermore, the NCC will concentrate its efforts on six priorities over the planning period, consistent with the 2017–2067 Plan for Canada’s Capital:5

1. Address the condition of Canada’s Official Residences, and other critical NCC infrastructure and assets. 2. Facilitate the redevelopment of LeBreton Flats and revitalize the islands and shorelines to become destinations of national significance. 3. Pursue strategies to achieve financial sustainability. 4. Develop and communicate land use plans and provide timely and effective coordination of federal land use and design in the National Capital Region. 5. Provide leadership in achieving an environmentally sustainable and resilient National Capital Region and exemplary stewardship of federal lands and assets. 6. Demonstrate corporate excellence as a federal Crown corporation, such that the NCC promotes diversity and inclusion and is recognized as an employer of choice in the National Capital Region.

As the steward of federal lands and assets in the NCR, the NCC is mandated to ensure that they are safe, appropriate and sustainable for Canadians to experience. The corporation has worked diligently alongside federal partners to protect its public infrastructure and to address deferred maintenance on the NCC’s diverse asset portfolio—especially as it relates to Canada’s Official Residences.

An essential role of the Official Residences is to provide a worthy setting to represent the best of the country to both Canadian and international visitors, in a manner consistent with the constitutional and legislative roles fulfilled by the Governor General, the Prime Minister, the Leader of the Official Opposition and the Speaker of the House of Commons.

To this end, the NCC strives to maintain and furnish the state or official areas of these residences to the standard of excellence expected by Canadians, to display examples of Canada’s finest furniture and art, to provide comfortable and attractive interiors, and to design inspiring grounds and surroundings.

The ownership and stewardship responsibilities for the buildings and grounds of the Official Residences in the NCR were officially transferred from Public Works and

5 http://capital2067.ca

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 7

Government Services Canada (PWGSC, now Public Services and Procurement Canada – PSPC) to the NCC in January 1988. The six Official Residences in the NCR are:

▪ Rideau Hall: home and workplace to the Governor General of Canada ▪ 24 Sussex Drive: home to the Prime Minister of Canada ▪ Harrington Lake: the country residence of the Prime Minister of Canada ▪ Stornoway: home to the Leader of the Official Opposition ▪ The Farm: home to the Speaker of the House of Commons ▪ 7 Rideau Gate: home to official guests of the Government of Canada

These primary buildings are all designated “classified” or “recognized” heritage by the Federal Heritage Buildings Review Office (FHBRO), reflecting the great national significance of the portfolio.

The entire Official Residences Portfolio includes not only these six primary residences, but also an additional 49 ancillary buildings, together providing a total gross area of approximately 25,000 square metres.

These Official Residences serve several key functions: ▪ a place for official business; ▪ a home and accommodation for the residents, their families and guests; ▪ working quarters and workplace accommodations for staff; and ▪ accommodation to host foreign and Canadian guests.

The NCC furnishes the residences with valued assets from the . The Collection comprises contemporary and antique works of art and furniture. Many of the items come from donations made through the Canadiana Fund. The Canadiana Fund was established in 1990 by the NCC to enhance the state and official areas of Canada’s Official Residences, through donations of examples of historical furnishings, paintings and objets d’art. The chosen pieces reflect Canada’s heritage and artistic traditions, or are historically associated with, or seek to complement, the architectural style of each residence.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 8

2 Asset Portfolio

The Official Residences reflect the nation to Canadians and to foreign visitors, so they must be maintained at a level that reflects the importance of the role of the residents. However, funding for Official Residences has been so constrained in the last several decades that properties such as 24 Sussex no longer reflect even this basic standard.

The National Capital Commission’s overall mandate for the Official Residences is to ensure that they provide safe and appropriate accommodations for Canada’s official leaders and that they serve as inspiring properties and grounds for the conduct of official and state events and ceremonies. The NCC also ensures that they are furnished, maintained and rehabilitated to safeguard their national heritage.

Governance and Oversight

The NCC’s Board of Directors is responsible for the stewardship of the NCC’s activities and assets—including the Official Residences. The minister responsible for the National Capital Act appoints board members with the approval of the Governor-in- Council, while the Governor-in-Council appoints the chair and CEO.

In carrying out its role, the Board of Directors undertakes the following: • Sets broad strategic directions for the organization; • Ensures the effective and efficient use of corporate resources; • Monitors and reviews corporate performance and risks; • Approves the corporate plan, annual report and quarterly financial reports; • Approves significant projects and transactions; and • Fosters relationships with government, stakeholders and the public.

The Advisory Committee on the Official Residences of Canada (ACORC) provides objective professional advice to the CEO and executive management on asset

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 9 management and matters relating to the six Official Residences in Canada’s Capital Region. Committee members include experts in interior design, architecture, landscape design, heritage preservation and real property asset management.

Funding

In 1987, following the decision to transfer responsibility of the management of the six Official Residences from PWGSC (now PSPC) to the NCC, some operating funds and full-time employees were transferred, without any capital funding or provision for future capital funding.

The investment required to properly maintain the NCC’s infrastructure and asset portfolio (with a total replacement value of approximately $2.2B) significantly exceeds the NCC’s annual capital appropriations from Parliament of $23M. In particular, pursuant to government decisions, only $3M of the NCC’s annual capital appropriations has been earmarked for the Official Residences asset portfolio, which includes 55 buildings.

The Official Residences compete equally with the other NCC assets for capital allocation and reallocations that result in the Multi-Year Capital Program, approved annually by the NCC’s Board of Directors. Through this planning exercise, all projects are prioritized using a set of criteria, and available funding is allocated to the highest- ranked projects.

Over the past 10 years, capital expenditures allocated to the Official Residences Portfolio have averaged $6.1M per year, far surpassing the $3M appropriation. This means that due to the severe underfunding of the Official Residences, even fewer resources have been made available to support the NCC’s other important assets, which were already significantly deprived of adequate funding.

Due to the shortfall in funding in general, and for the Official Residences specifically, the NCC has had to defer maintenance on numerous assets in order to prioritize work, primarily to address health and safety issues.

While recent budget allocations from the Government have provided the NCC with important investments to allow the corporation to significantly improve the condition of certain priority assets, the Official Residences did not benefit from these recent government allocations. The rehabilitation and restoration of assets within the Official Residences Portfolio remains a key corporate priority.

Management Principles

A statement of philosophy and a set of management principles have been established, with the support of the ACORC to guide the NCC in its duties of policy development, strategic planning, long-term development and maintenance of the Official Residences. The full text of these guidance documents can be found in Appendix B.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 10

2.1 LOCATION

The Official Residences of Canada’s Capital Region are located on both sides of the River: two in the province of and four in the province of .

A general map is provided below, showing the location of each of the six Official Residences.

The properties in Ontario are located within 1 km of each other in the area of in Ottawa, whereas the Quebec properties are located in more rural areas of the towns of Chelsea and Pontiac. Harrington Lake is the most distant property to service, located approximately 30 km from Rideau Hall.

Star Property Red Harrington Lake Orange The Farm Aqua 24 Sussex Purple 7 Rideau Gate Green Rideau Hall Blue Stornoway

Figure 1: Map of National Capital Region showing the location of the NCC’s six Official Residences

2.2 SIZE OF ASSET PORTFOLIO

The NCC is responsible for the property management activities, as well as long-term capital planning and support in capital improvements for the six-property, 55- building portfolio.6 Four of the buildings that the NCC maintains within the Official Residences Portfolio are located at a remote site and used for storage of materials and equipment. The Portfolio by property is shown below.

6 The NCC is also responsible for interior design services, stewardship of the Crown Collection of Canada, and maintaining the grounds and greenhouses.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 11

Figure 2: No. of Buildings

2.3 AGE OF ASSET PORTFOLIO

The main residences and the overwhelming majority of their ancillary buildings were built when different building codes and lower standards of health and safety requirements applied. Approximately 74% of the building portfolio is over 50 years old, with 16% older than Canada, which recently celebrated its 150th birthday in 2017.

7% Buildings under 10 years old 16% 18% 2% 18% Buildings 10-49 years old

Buildings 50-99 years old 10% 29% 56% Buildings 100-149 years old 29% 14%

Buildings over 150 years old Asset Distribution Asset Gross Based on Age Area Based on Age Figure 3: Portfolio Age

Operating, maintaining, and improving an aged and aging building stock comes with significant challenges. This is clear when comparing the performance of the Official Residences’ building stock to recently built assets. These more modern buildings have important performance, function and usage benefits due to drastic improvements in energy efficiency and program design, in addition to new UA standards that have come into effect over time.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 12

Further, very few of the buildings in the Portfolio were purpose-built for their current use, which affects the livability and functionality of most of the major assets. The majority of the gross area of the Portfolio has been repurposed to fit with changing occupant requirements. Former stables, dairy houses, and gasometers at the turn of the 20th century are now spaces for office administration, public usage, and mail services in the 21st century.

A particularly striking example of the impact of the age of the Portfolio on its cost and performance relates to issues of sustainability and greenhouse gas emissions. Due to the age and lack of funding for Official Residences in the NCC portfolio, those properties now account for more than 60% of all greenhouse gas emissions generated by NCC assets.

2.4 CONDITION OF ASSET PORTFOLIO

Investments over time into the operation and maintenance of a facility or portfolio largely influence its physical condition. Therefore, it is important to regularly monitor and assess the condition of a facility or portfolio to ensure that the necessary funding is allocated in an effective manner, to maintain or improve each built asset and ensure it continues to efficiently contribute to the program it supports.

Prior to 2017, building inspections of the Portfolio were performed on a three-year cycle by the NCC’s lifecycle inspection team, to assess a number of building components. These components were evaluated on a scale from critical to excellent, and examined building systems for signs of deterioration, deferred maintenance, code issues, potential upgrades, etc.

2.4.1 Portfolio Condition Assessment Program

In 2017, the NCC revised the assessment program for the Official Residences to provide a more thorough understanding of the condition of the Portfolio.

For the largest and most complex buildings, the NCC commissioned in-depth building condition reports (BCRs), consistent with a PSPC Level II BCR. These BCRs were performed by a third party, multidisciplinary team of professionals. The PSPC reporting template, methodology, and costing baseline was adopted by the NCC lifecycle inspection team who, in turn, assessed and generated a dedicated BCR for a large majority of the remaining Official Residences’ building stock. They were fully supported by NCC building operations staff to ensure that building component history was accurately captured.

It should be noted that the three buildings located at 24 Sussex Drive, the Main Cottage at Harrington Lake and Rideau Cottage were excluded from the 2017 study,

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 13 as the condition of these buildings was well known. This is due to the numerous in- house and third-party investigations and studies performed on behalf of the NCC in recent years.

In total, the 2017 assessment program had comprehensively detailed the investment requirements to address ongoing maintenance, deferred maintenance, and other capital infrastructure renewal of 50 of the then 56 buildings (89%) in the Portfolio (one ancillary building has since been demolished due to instability and health and safety concerns, bringing the total to 55). Coupled with the numerous investigations and reports completed on the buildings at 24 Sussex Drive and the Main Cottage at Harrington Lake, the NCC had renewal investment information for over 96% of the Official Residences building portfolio.

To provide an independent verification, a third-party review of the deferred maintenance costing was completed for the largest and most complex buildings.

2020 Building Condition Reports (BCR)

In late 2020, the NCC updated its BCR information and associated cost estimates in view of developing long-term Asset Management Plans (AMPs) for each of the properties and residences.

The 14 buildings selected to be part of the update included the main residences, except for 24 Sussex and 9 other key assets. 10 Sussex was included in this review, as was the Main Cottage at Harrington Lake to provide a before and after perspective of the budgets, schedules and delivery methods, to help inform future projects, once again using the PSPC reporting templates.

For the buildings that were not included in the 2020 inspections, the information in the 2018 Report was reviewed internally and adjusted to account for the recent work completed, and the costing associated with the remaining maintenance requirements, which was then escalated by 2% per year, over 3 years.

The costs provided in the reports for the properties reviewed in 2020, were estimated and validated by Turner & Townsend. These Building Condition Reports are the basis from which the Official Residences’ estimated deferred maintenance deficit of $89.1M has been calculated.

These estimates represent average, non-residential construction involving union labour. In some instances, these cost estimates have been increased, using the actual cost of past projects, industry knowledge, or current industry pricing. Prices are inclusive of 15% site overhead and profit, a 15% construction contingency, a design contingency of 20% and a 30% allowance for soft costs on top of which a 25% risk management contingency was added. No allowances have been included for alteration work, difficult access, crash schedules, or any other extremes or unforeseen conditions.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 14

The Government of Canada’s Guide to the Management of Real Property (Treasury Board of Canada) identifies the overriding objective of a property steward as ensuring that a property continues to fully, effectively, and efficiently meet the program requirements of the department whose program it supports.

To make informed real property investment decisions, metrics need to be established to identify which properties in a portfolio are effectively and economically supporting a department or agency’s program.

2.4.2 Facility Condition Assessment

The facility condition index (FCI) is a key performance indicator which is used by real property managers to objectively quantify and evaluate the current condition of a facility or portfolio. The FCI is a calculation based on known deferred maintenance costs divided by the current replacement value (CRV) of the asset; the lower the FCI, the better the condition of the building or portfolio as more maintenance has been completed, than deferred.

푫풆풇풆풓풓풆풅 푴풂풊풏풕풆풏풂풏풄풆 (푫푴) 푭풂풄풊풍풊풕풚 푪풐풏풅풊풕풊풐풏 푰풏풅풆풙 (푭푪푰) = 푪풖풓풓풆풏풕 푹풆풑풍풂풄풆풎풆풏풕 푽풂풍풖풆(푪푹푽)

Based on this ratio, which can range between 0 and 1, the NCC qualifies its building assets in line with the Treasury Board of Canada Secretariat’s Directory of Federal Real Property’s (DFRP) building condition field classifications as either “Good”, “Fair”, “Poor”, or “Critical” condition. The definition for each classification is shown below.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 15

DFRP BUILDING FCI ASSET RISK OF O&M COSTS CLASSIFICATION SYSTEM(S) SYSTEM(S) FAILURE Good 0.00– Meet(s) all Highly Low and 0.05 operational Unlikely Predictable requirements Fair 0.06– Meet(s) most Unlikely Moderate with 0.10 operational Some Backlog requirements Poor 0.11– Some or all are Likely High with 0.30 compromised Unplanned Maintenance Critical 0.31– Frequent Very Likely High with 1.00 emergency Frequent maintenance and Unplanned repair Maintenance Table 1: DFRP Building Classification System Definitions

Official Residences Portfolio FCI Assessment

The 2018 CRV of $615M for the Official Residences Portfolio was calculated based on a number of factors including: the area of the building, class of building, third-party opinion of probable costs, or actual project costs of select federal and provincial heritage buildings which took place between 2012 and 2017.

The buildings’ respective 2018 CRVs were then escalated by 2% per year over three years for a 2021 revised CRV of $653.2M. It is important to note that the Portfolio has undergone minor changes since 2018, including the demolition of one building and the rehabilitation of two of the three buildings in critical condition.

Based on the estimated deferred maintenance deficit of $89.1M and an estimated CRV of $653.2M, the overall FCI of the Portfolio in 2021 is 0.136, which means an overall classification of “Poor”.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 16

Official Residences Portfolio Main Residences Only FCI Based on No. of Buildings FCI Based on No. of Buildings 0%

Good 24% 24% 17% Fair

16% Poor 67% 16%

Critical 36%

Figure 4: OR Portfolio FCI Assessment

Official Residences Portfolio Age/Facility Condition Index Matrix Main Residences Ancillary Buildings 200

180 Rideau Hall

160 7 Rideau Gate 24 Sussex 140 The Farm 120 Stornoway 100 Harrington Lake

Age Age (Years) 80

60

40

20

0 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 Facility Condition Index

Figure 5: OR Portfolio Age/FCI Matrix

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 17

Figures 4 and 5 demonstrate that while the overall FCI for the Portfolio is “Poor” at 0.136, 61% of the Portfolio’s individual assets are identified as being in “Poor” to “Critical” condition. However, the vast majority of the assets are operationally safe. Of the main residences, Rideau Hall, Harrington Lake, Stornoway and 7 Rideau Gate are now all in “Fair” condition, with the Farm in “Poor” leaving only 24 Sussex “Critical”. Historical investments have been prioritized to repair building failures (roof leaks, plumbing, electrical, etc.), alleviate current health and safety concerns, comply with regulations and ensure critical building systems remain in operation.

2018 2021 Deferred Maintenance (DM) $83.0M $89.1M Current Replacement Value (CRV) $615M $653.2M Facility Condition Index (FCI) 0.134/Poor 0.136/Poor

2.4.3 Asset Priority Index

The Asset Priority Index (API) is a metric assigned to each Official Residences’ real property assets that indicates the relative importance of the asset in supporting the program’s objectives. In tandem with the FCI, the API allows the NCC to better compare assets against each other, in order to make effective and timely funding and programming decisions. The API has been a determining factor in the decision to rehabilitate the Main Cottage at Harrington Lake and the NCC’s interest to begin work at 24 Sussex Drive, once Government funding is made available.

Furthermore, by assigning a relative priority to each of its assets, the NCC is well positioned to determine the level of intervention that each asset requires. For example, a high priority building in “Critical” condition may warrant additional funding when compared with a lower priority building, in the same condition, which, due to its low priority, may be considered for demolition or disposition.

Each of the Official Residences’ built assets is assigned an API ranging from 0 to 100, where 100 is an asset of highest priority and just above 0 is an asset of lowest possible priority.

The API is generated by individually rating a number of criteria that are important to delivering on program objectives and to maintain and preserve the assets to effectively and efficiently meet the program requirements of its occupants.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 18

CRITERIA ASSESSMENT POINTS

Heritage Preservation Is the asset of historical significance? Is it easily 0–20 substituted? Availability Is the asset readily available to the NCC to perform 0–15 work? Building Criticality Is the asset critical to the ongoing operations of the 0–15 Official Residences? Functionality Does the asset have livability issues? Does the asset 0–10 perform poorly for its purpose? Designated To what degree does the asset contain designated 0–10 Substances substances? Health and Safety Does the asset have Code issues? Universal 0–20 Accessibility issues? Outstanding safety issues? Environmental Impact What is the asset’s relative impact on greenhouse gas 0–10 emissions?

Table 2: Asset Priority Index (API) Definition

Note that asset condition is not a criterion in scoring the API. The API is solely for ranking assets in their priority in meeting program objectives. Should an asset have a high API and high FCI (e.g., be in poor/critical condition), it would be a higher priority relative to other investment needs.

A comparison of the API and FCI of the Portfolio is shown in the graph below.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 19

ORB Portfolio API/Condition Matrix

Main Residences Ancillary Buildings 100 24 Sussex 90

80 Rideau Hall 70 Harrington Lake Stornoway 60 The Farm

50 7 Rideau Gate API

40

30

20

10

0 0.00 0.20 0.40 0.60 0.80 1.00 Facility Condition Index Figure 6: OR API/FCI Matrix

Figure 6 demonstrates that 24 Sussex is in critical condition and a high priority.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 20

2.5 SUSTAINABLE FUNDING

Deferred Maintenance Deficit

The Deferred Maintenance (DM) of a building typically refers to “…the backlog of unfunded major maintenance and renewal projects that have been deferred to future budgets. It results either from an accumulation of neglected routine maintenance items which evolve into more serious concerns or from failure to carry out major repair or restoration projects on facilities which have reached the end of their life cycle or have become obsolete.”7 This value is a cost estimate for a “like for like” replacement or repair of an asset.

For the Official Residences Portfolio, the DM is the estimated value of the cumulative work required over time to maintain the asset in “Good” condition. This deficit is currently estimated at $89.1M and is due to decades of underfunding and a lack of extended access to the properties in order to complete the work.

Asset Recapitalization

As shown in Figure 3, 74% of the building portfolio is over 50 years old.

There are numerous issues that need be resolved in each of the residences, including building envelope, programmatic operations, building systems, and security.

Recent improvements of heating and cooling systems in some of the buildings has resulted in more efficient operation, however, most of the buildings have little or no insulation, and far exceed GHG target emissions (As a federal Crown corporation the NCC must meet the Net Zero by 2050; target set by the Government of Canada). Many of the building systems have reached the end of their useful life, are no longer running efficiently, are susceptible to frequent failures and require a great deal of maintenance or replacement. The age and condition of the electrical systems necessitate a long-term strategy to incrementally replace the panels and distribution across the entire Portfolio. The sanitary plumbing systems fail or backup on a regular basis. The fire protection piping requires cyclical attention to ensure that it functions as intended, when required. Certain air handling systems need to be upgraded or replaced, due to their age. UA is also a major issue for every residence and is a serious concern to all Canadians and increasingly so with an aging population.

All these identified works are complicated by the heritage designation of the buildings, the presence of contained asbestos throughout many of the interior finishes, and many areas that need renewal are within confined work areas in spaces that are difficult to access.

7 2001 Standing Senate Committee on National Finance Report: The Role of the Government in the Financing of Deferred Maintenance Costs in Canada’s Post-Secondary Institutions.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 21

What this means is that significant recapitalization of the entire Portfolio within the next 5 to 10 years is unavoidable. Without significant investments, it is only a matter of time before more buildings must be vacated to ensure health and safety of the occupants.

Sustainable Funding

In terms of strategic planning, a standard and recognized best practice ascribes a minimum 2% of the cost to rebuild the asset is to be invested annually for maintenance and repairs. This standard applies to most built assets including buildings, facilities or public works such as roads and sewers. Assuming that a built asset has a useful life of approximately 50 years, an additional 2% is to be invested in capital projects that extend and renew the life of the asset. Heritage assets require even more annual investment, given the age of the materials/systems and the complexity of restorative and preservation work. This is reflected in the Government of Canada’s Guide to the Management of Real Property, which indicates that the minimum level of annual investment to maintain real property in good condition is 4% of its replacement value.8

Based on the CRV of $653.2M, sustainable funding for the Official Residences Portfolio is estimated to be $26.1M annually (~$13M for repair and maintenance and ~$13M for capital investment).

As annual investments in this order of magnitude have never been available for the Official Residences Portfolio, many assets have deteriorated faster than life cycle forecasts would predict and now require complete recapitalization. The following figure highlights the benefits of timely renewal investments:

8 Government of Canada’s Guide to the Management of Real Property.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 22

Figure 7: Small but Timely Renewal Investments Save Money (https://files.ontario.ca/figure1-en-v2.jpg)

For a building with a CRV of $60M, regular investments of $10M every 15 years, will maintain the asset in good condition. This amounts to a total of $40M over the typical useful life of a built asset.

Much like what has happened to the Official Residences Portfolio, the long-term costs are much higher when the asset is allowed to completely deteriorate before investing the full replacement value of $60M once, then again letting the asset completely deteriorate over the same amount of time.

Figure 7 shows how much a wise investment of regular maintenance and recapitalization will save taxpayers over time. Regular maintenance and recapitalization will result in a total savings of $20M over the life of a typical real property asset, with a replacement value of $60M.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 23

3 Asset Report Cards

The following section summarizes the present condition of each of the Official Residences managed by the NCC, highlighting their history, the present condition of the assets, recent infrastructure investments, risks of asset failure, and proposed infrastructure investments to maintain or improve building condition and a summary dashboard.

3.1 RIDEAU HALL

3.1.1 Background

Rideau Hall is a National Historic Site of Canada and has been the official residence and workplace of every governor general of Canada since 1867. Traditionally the home and workplace of the Governor General, Rideau Hall has played a prominent historical and constitutional role in Canada since Confederation.

Rideau Hall comprises 32 hectares (79 acres) of grounds, the Main Building with some 175 rooms covering approximately 8,825 m2 (95,000 ft2). The site includes 25

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 24 outbuildings, many of national heritage significance. A site plan is included in Appendix D.

The Federal Heritage Building Review Office (FHBRO), reviewed the Rideau Hall Main Building, grounds and outbuildings in 1986 and 1987. The following were deemed “Classified”: - Main Building, including the greenhouses; - Front Gate and Fence (1868 portion); and, - Grounds.

Today, Rideau Hall, continues to be the Official Residence and official workplace of the Governor General of Canada. It is also the workplace of over 200 employees of the Office of the Secretary to the Governor General (OSGG), the NCC’s Official Residences Branch, the RCMP’s Governor General’s Protection Detail and Prime Minister’s Protection Detail and the Governor General’s Foot Guards (Canadian Armed Forces).

Averaging 280,000 visits every year, the Rideau Hall site is traditionally open year- round for public visits and tours and is host to hundreds of official events, ceremonies and state visits of world leaders from around the globe.

3.1.2 FHBRO-Recognized Ancillary Buildings

A number of the secondary buildings at the Rideau Hall site were deemed “Recognized” by FHBRO, due to their important historical associations, design qualities, landmark status or environmental significance. Below is a brief description of each of these assets with an accompanying historical and recent photo of each building, to demonstrate how their appearance or function has evolved over time.

3.1.2.1 Rideau Cottage Built in 1866, it served continuously as the residence of the Secretary to the Governor General until October 2015. Since that time, it has served as the temporary residence

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 25 of the Prime Minister of Canada and family. The building underwent an extensive renovation in 2012.

3.1.2.2 The Gate Lodge Built between 1864 and 1867, this octagonal building is the first that visitors see as they pass through the main gates of the Rideau Hall site. It is used today as administrative space for OSGG staff.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 26

3.1.2.3 The Foot Guard House Built in 1939 and renovated in 2012, the building is occupied during the summer by the Governor General’s Foot Guards.

3.1.2.4 The Stable Building Built in 1867, it was rehabilitated in 2003 to accommodate OSGG administrative functions.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 27

3.1.2.5 The Dome Building Originally a “gasometer” built in 1877–78 to store manufactured coal gas to fuel light fixtures in the residence, it was rehabilitated in 2013. The rehabilitation included a three-floor elevator tower and extensive designated substances removal. It is currently used for OSGG administrative functions.

3.1.2.6 The Dairy Building Built in 1895, it was rehabilitated in 2016 and relocated to the Rideau Hall skating rink area, where it serves as a Skating Pavilion, offering an area for skaters to change in the winter and as a meeting space during the remainder of the year.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 28

3.1.3 History

Thomas MacKay built the original stone in 1838, as a home for his family, which now forms the main part of the Official Residence. MacKay was a stonemason and contractor who built the entrance locks of the and the mills at , the landmark after which Rideau Hall was named. It has been home to every Governor General since Confederation. Period photographs show it as a rectangular, three-storey stone villa, with a semicircular facade facing the garden.

In 1865, the house was leased to the Canadian government as a residence for The Viscount Monck, 21st Governor General of , who became Canada’s first Governor General. That same year, Lord Monck added a long, two- storey wing and also laid out the formal path that leads to the front of the house.

In 1868, the year after Confederation, the Government of Canada purchased the house and grounds for $82,000 and declared it an official residence for Canada’s governors general.

In the time of Canada’s third Governor General, Lord Dufferin (1872–1878), the Ballroom and the Tent Room were built as wings on either side of the front entrance. The Tent Room was originally designed as both an indoor tennis court and reception room. Both rooms are now used for official and ceremonial functions.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 29

The Minto Wing was added in 1899 to supply more living space. The Governor General’s study, with its window overlooking the gardens, was built in 1906, during the mandate of Earl Grey (1904–1911).

Many changes were made during the tenure of the Duke of Connaught (1911–1916). In 1913, work was completed on the interior entrance hall and the present front entrance. The massive motif of the Royal Arms, visible from the driveway, is said to be one of the largest in the world. Also in 1913, the Long Gallery was added and the Dining Room was enlarged. Concerned about the lack of sunlight in the residence, the Duke had many of the fir trees on the grounds replaced with and other species.

Over the years, various changes have been made to the stately building to meet the demands of modern times, including media and security requirements. The grounds, the building and its interiors have also evolved to better reflect and reinforce Rideau Hall’s identity as Canada’s national home. 3.1.4 Present Condition

The Main Residence has an FCI of 0.07 (DFRP Rating = Fair) and is considered a high priority building, with an API score of 77. Given its current condition and API, it is important to perform both minor operations and maintenance projects, as well as major rehabilitation work, of various systems and areas.

RIDEAU HALL ESTATE YEAR AREA DM CRV FCI API BUILT (M2) ($000) ($000) (DM/CRV) Main Residence 1838 9,468 31,078 454,464 0.07 77 Gate Lodge 1867 187 402 3,179 0.13 62 Ceremonial Greenhouse 1923 285 308 1,625 0.19 57 #1 Rideau Cottage 1867 931 188 15,827 0.01 52 15 & 17 Lisgar 1912 300 510 5,100 0.10 50 9 & 11 Lisgar 1867 303 1,056 5,151 0.21 48 Visitor Centre 1864 306 132 5,202 0.03 43 NCC Administration 2020 2,013 - 8,875 0.00 42 Office – Under construction Taxi Stand 1940 32 104 544 0.19 41 Palmhouse #2 1925 110 279 933 0.30 40 Tennis Pavilion 1929 38 89 323 0.28 38 Central Heating Plant 1973 284 207 3,124 0.07 38 Stable Building 1864 962 204 10,582 0.02 37 Dairy Building 1894 80 7 1,120 0.01 37 (Skating Pavilion) Foot Guard House 1939 56 25 952 0.03 35 Dome Building 1877 424 88 4,664 0.02 34

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 30

Official Car Garage – 1911 550 25 7,700 0.00 34 New 2017 Greenhouse Mechanical 1910 70 64 770 0.08 33 Room Rideau Hall Pump 1980 11 31 120 0.26 30 House (Governors’ ) Production GH # 3 and 1938 288 391 1,642 0.24 30 #4 Production GH # 5, #6 1938 372 363 2,120 0.17 30 and #7 Production GH # 8 1980 35 29 197 0.15 30 Cold Room 1960 465 127 488 0.26 28 Root Cellar 1910 126 60 718 0.08 28 Wood Shed 1950 19 31 53 0.58 23 Rideau Hall Tool Shed 2000 10 9 11 0.85 15

Table 3: Summary of current condition of Rideau Hall site buildings

3.1.5 Historical Investments

Since 1988, development plans, supported by asset condition reports, for both the buildings and grounds have been completed and several upgrades have been made.

Projects such as the replacement of central chillers and steam boilers, envelope improvements, roof replacements, as well as rehabilitation and repurposing of heritage buildings have been completed as part of this renovation program. Investigations to ensure site reliability have also been completed, for example a 2013, third party study assessed the underground water network at the site as being in good condition with a 2013 replacement value estimated at $982K.

Below, a more comprehensive list of the rehabilitation initiatives undertaken since 2005 to the Main Building, ancillary building(s), and grounds is shown.

ASSET ELEMENT MAJOR REHABILITATION PROJECTS Exterior Systems • Front Façade Rehabilitation (restoration of Mappin Wing stone façade) • Exterior Envelope Rehabilitation – Wall Assembly (Ballroom, Tent Room) • Roofs Rehabilitation – Mappin Wing, Tent Room, Ballroom (new copper roofs c/w insulation, heating cables, gutters and downspouts) • Dining Room – Roof replacement • Princess Anne Entrance – Roof replacement • Admin Building – Roof replacement • Ambassadors’ Court – Foundation damp proofing Mechanical/Electrical • Ballroom and Mappin Wing – Air conditioning (installation of a new Systems central system) • Admin Wing (hot water heating controls) • Replacement of fire suppression sprinkler heads and correction of system deficiencies

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 31

• Hospitality Wing (fan coil replacement) • Geothermal heating and cooling system (replacement of air-cooled chillers) • Main Kitchen (replacement of steam kettle, convection steamer, and grease traps) • Handicap Lift (controller upgrade) • Recommissioning of HVAC systems • Replacement of monitoring station for fire protection system • Replacement of main steam pressure reducing valve • Upgrade to Siemens building automation system • Domestic hot water system upgrade • Monck Wing – Attic HVAC (geothermal glycol line extension) • Replacement of the underground glycol lines near the PA entrance • Conversion of heating system from steam to hot water Interior Architectural • Private Quarters – Upgrades (life cycle upgrades to bathrooms, new kitchenette, floor refinishing and interior elements) • Ball Room – Plaster stabilization and media light replacement • Tent Room – Interior rehab (new fabric, fire detection/suppression, sound system) • Monck Wing Attic – Hazardous materials removal • Front Entrance Handrails • Mappin Wing and Monck Wing – Fire stopping project • Main Laundry – Replace commercial laundry equipment • Cafeteria – Rehabilitation • Monck Wing – Basement (hazardous material removal, pouring of slab, masonry work) • Servery – Kitchen equipment (replacement of equipment) • Monck Wing – 2nd floor bathroom (expansion and rehabilitation of fixtures/finishes) • Admin Building – Staff washroom rehabilitation

Ancillary Buildings • Rideau Cottage rehabilitation Significant upgrades to exterior envelope, interior finishes and mechanical/electrical systems • Stable Building Replacement of potable water service piping Recommissioning of HVAC System Conversion of heating system from steam to hot water) • Dome Building – Complete rehabilitation and addition • Dairy Building – Rehabilitation into Winter Pavilion • Central Heating Plant Main electrical board replacement Conversion of heating system from steam to hot water replacement of electrical • Ceremonial Greenhouses Full heritage restoration of Greenhouse 2 and life cycle upgrades for Greenhouse 1 Conversion of heating system from steam to hot water • Greenhouses 3, 4, 5, and 6 Replacement of side vents Asbestos transited panel table removal and replacement Conversion of heating system from steam to hot water • Visitor Centre – Exterior envelope and interior rehab

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 32

(roof, windows restoration, exterior walls, floors, heating and air conditioning, washrooms) • Footguard House Full exterior envelope, mechanical/electrical and interior fit-up • Ground Source Mechanical Room (new construction as addition to the Footguard House to house Geothermal mech. equipment) • Ice House, NCC Garage, NCC Grounds Administration Demolition of buildings as Part of Phase 1 of Operation Zone Redevelopment Infrastructure and • Perimeter fence Grounds (restoration of small portions along Rideau Gate, Thomas Street, and a section along Princess Avenue) • Emergency generator (diesel tank replacement and enclosure upgrades) • Front forecourt landscaping (Including replacement of Fountain) • Sanitary sewer realignment Table 4: Past construction projects at Rideau Hall site buildings

Historical spending for the past 10 years at the entire site, including outbuildings, grounds, and infrastructure, is shown below.

FISCAL YEAR O & M CAPITAL TOTAL

($) ($) ($) 2010–2011 2,132,608 6,653,482 8,786,090 2011–2012 1,697,993 4,152,507 5,850,500 2012–2013 1,639,796 6,180,109 7,819,905 2013–2014 2,205,134 4,142,349 6,347,483 2014–2015 1,891,026 1,739,287 3,630,313 2015–2016 2,507,491 5,492,012 7,999,503 2016–2017 1,804,731 9,663,652 11,468,383 2017–2018 1,395,329 6,031,564 7,426,893 2018–2019 1,661,876 2,157,344 3,819,220 2019–2020 1,676,383 2,356,882 4,033,265 TOTAL ($) 18,612,367 48,569,188 67,181,555

Table 5: Historical spending at Rideau Hall site

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 33

3.1.6 Proposed Deferred Maintenance Investments

The proposed investments in the property over the next 10 years are grouped by building asset type. In general, it is proposed to leverage capital and operations and maintenance (O&M) funding to improve assets that are in Fair-to-Poor condition.

Proposed capital and O&M projects include: • UA studies and upgrades; • exterior envelope improvements including wood window replacement and brick/block/stucco repairs; • foundation and footing work; • copper roof replacement; • membrane roof replacement; • replacement of interior floor finishes; • replacement of one freight elevator and one passenger elevator; • replacement of Servery air handling equipment; • replacement of Tent Room air handling unit; • upgrades to the building automation system; • the replacement of electrical wiring/panels and lighting fixtures; • the replacement of the fire alarm system; and, • the replacement of hardwood flooring.

3.1.7 Summary

The following dashboard highlights the performance gap between the NCC’s Management Principles and the current condition of the Main Residence. Also shown is the deferred maintenance deficit and historical investments for the Main Building only.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 34

O&M 10-Year Average Capital 10-Year Average $1,861,237 $4,856,919

2% of CRV 2% of CRV $9,089,280 $9,089,280

O&M Funding Capital Funding 10-Year Average 10-Year Average

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 35

3.2 24 SUSSEX DRIVE

3.2.1 Background

The Main Residence at 24 Sussex Drive was built in 1867 and holds a FHBRO “Classified” heritage designation. The site includes 2.15 hectares of grounds, one main building with 34 rooms that covers approximately 1,010 m2 (~11,000 ft2), as well as another small home at 10 Sussex Drive, which was originally a coach/caretaker’s house (presently, an RCMP detachment), a pool house, and two RCMP guard houses.

The Main Residence is not currently occupied by the Prime Minister of Canada, who now resides on a temporary basis at Rideau Cottage on the grounds of Rideau Hall. However, household staff workspace is still accommodated at the 24 Sussex site. When fully operational, the site is expected to accommodate a permanent detachment of the RCMP, as well as the operational staff.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 36

3.2.2 History

Built in 1866–68 by Joseph Currier, a lumber baron and member of the 1st Dominion Parliament, the main building at 24 Sussex Drive was originally a pleasant Gothic Revival villa. In 1870, a ballroom was added to entertain Prince Arthur, future Duke of Connaught. In 1902, the property was sold to William Cameron Edwards, another lumber manufacturer.

In 1943, the Government began the process of expropriating the house, a process that lasted into 1946 due to the vigorous objections of its then owner, Senator Gordon C. Edwards.

In late 1949, the Government decided to make the house over as the residence of the Prime Minister. To render the house suitable for the Prime Minister, the architects stripped away its Victorian ornament, demolished the tower on the west front and lowered some exterior walls to regularize the massing of the house. In addition, its fenestration was completely altered, and the apparent size was about doubled, all this in the process of rendering the original house quite unrecognizable. The result suggests that the architects were attempting to create a Georgian-style house.

The new house was finished and occupied, reluctantly, by Louis St-Laurent in 1951.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 37

3.2.3 Present Condition

The Main Residence has an FCI of 0.91 (DFRP Rating = Critical) and is considered a very high priority building, with an API score of 97. Given its current condition and API, a major rehabilitation of the Main Residence is recommended.

24 SUSSEX DRIVE YEAR AREA DM CRV FCI API BUILT (M2) ($000) ($000) (DM/CRV) Main Residence 1867 1,672 36,644 40,128 0.91 97 Caretaker’s House 1867 304 2,122 6,388 0.59 82 Pool Building 1975 325 5,709 7,800 0.73 44 East Guard Hut N/A N/A N/A N/A N/A N/A West Guard Hut N/A N/A N/A N/A N/A N/A

Table 6: Summary of current condition of 24 Sussex site buildings

Currently, there are numerous issues that need to be resolved in the facility, including programmatic operations, building systems, UA and security.

24 Sussex was not purpose-built as a fully functioning official residence, although it is divided into private, office and official space; only 20% of the space at 24 Sussex Drive is designated as “Private” for the Prime Minister and their family. Those areas designated as “state” or “official” spaces are not appropriate in layout or condition to serve official functions. For example, the building has no universally accessible entrances or washrooms, the kitchen is not appropriate to serve official functions, and the dining room is both too large for a family and too small for state or official dinners.

The building systems at 24 Sussex Drive have reached the point of imminent or actual failure and require replacement. The age and condition of the electrical systems poses a fire hazard, and the plumbing systems have failures on a regular basis. The building has no permanent air conditioning system; window air conditioners are run in every room in the summer, which poses a security risk and is disruptive and costly. Repairs and/or upgrades are complicated due to the presence of asbestos, lead and mould throughout many of the interior finishes.

In addition, the threat environment has changed drastically in the world since the last major renovation to the site in 1951. As such, the RCMP has recommended a number of significant security upgrades.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 38

3.2.4 Historical Investments

Since 1988, development plans, supported by asset condition reports, for both the building and grounds have been completed and several upgrades have been made.

Projects such as the stabilization of the escarpment, electrical system repairs, roof repairs, and regular decorative upgrades to state areas have been completed as part of this renovation program. Below, a more comprehensive list of the rehabilitation initiatives undertaken since 2005 to the main building, ancillary building(s), and grounds is shown.

ASSET ELEMENT MAJOR REHABILITATION PROJECTS

Exterior Systems • Family room windows (replacement) • Masonry stabilization Mechanical/Electrical • Chimney rehabilitation Systems • Various mechanical and electrical improvement projects Interior Architectural • Fire compartmentalization of boiler room, east and west stairs • 3rd floor private quarters (life cycle renewal of finishes, including flooring, paint, light fixtures) • Minor hazardous material removal Ancillary Buildings • 10 Sussex Relocation of NG meter Replacement of furnace • Pool house Pool dehumidification Replacement of steam sauna equipment Infrastructure and • Escarpment stabilization Grounds • Rehabilitation of emergency generator • Minor updates to escarpment catwalk

Table 7: Past construction projects at 24 Sussex site buildings

Historical spending for the past 10 years at the entire site, including outbuildings, grounds, and infrastructure, is shown below.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 39

FISCAL YEAR O & M CAPITAL TOTAL

($) ($) ($) 2010–2011 219,183 410,574 629,757 2011–2012 203,380 345,919 549,299 2012–2013 323,096 661,506* 984,602 2013–2014 236,667 1,453,122* 1,689,789 2014–2015 200,859 15,711 216,570 2015–2016 272,303 0 272,303 2016–2017 546,828 6,632 553,460 2017–2018 299,278 0 299,278 2018–2019 145,505 0 145,505 2019–2020 84,148 0 84,148 TOTAL ($) 2,531,247 2,893,464 5,424,711 * 95% of capital spending in these years on site infrastructure improvements.

Table 8: Historical spending at 24 Sussex site

3.2.5 Needed_Recapitalization

24 Sussex Drive has not seen significant investment in over 60 years, and it requires extensive and urgent repair. All buildings on the site require major interventions and recapitalization.

Proceeding with construction activities on the Main Residence would first require the abatement of hazardous materials, including asbestos, lead and mould, and examining the possible retention of certain heritage components. At a minimum improvements are needed to the building envelope, complete replacement of mechanical and electrical systems, construction of universally accessible entrances and washrooms, creation of dining and event facilities and support spaces to accommodate state and official functions.

The Pool Building also requires a new building envelope (walls, windows, doors, roof and skylight) as the current building envelope is rotting and contains mould due to high interior humidity levels.

The Caretaker’s House (10 Sussex) is also in “Critical” condition and needs extensive recapitalization.

3.2.6 Summary

The following dashboard highlights the performance gap between the NCC’s Management Principles and the current condition of the Main Residence. Also shown

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 40 is the deferred maintenance deficit and historical investments for the Main Residence only.

O&M 10- Capital 10- Year Year Average Average $253,125 $88,476

2% of CRV 2% of CRV $802,560 $802,560

O&M Funding Capital Funding 10-Year Average 10-Year Average

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 41

3.3 HARRINGTON LAKE

3.3.1 Background

The main area of Harrington Lake (known in French as Lac Mousseau) comprises 5.4 hectares (13 acres) of grounds, one Main Cottage with 16 rooms covering approximately 771 m2 (8,300 ft2), plus 10 ancillary buildings. Inside the Park boundaries, located in Pontiac, Quebec, the Main Cottage has received the “Recognized” heritage designation from FHBRO.

The site is for use by the Prime Minister and their family, throughout the year, for both official and private purposes.

It is not open to the public.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 42

3.3.2 History

The Main Cottage at Harrington Lake is a typical country house in a Twenties Colonial Revival style.

In 1951, about two-thirds of the property belonged to Lt. Col. Cameron Edwards, who had assembled the land over a number of years around a core property, with the intention to set himself up as a gentleman farmer. He built the main house in 1925 as his country home and farmhouse. Further evidence of his agricultural intent is provided by the experimental precast concrete barn he built in 1929, which is now used for storage.

The remaining third of the property was acquired from the Honourable William Herridge, who had held the land from the early twenties. Until his death in 1961, he retained the use and enjoyment of a winterized log cabin (now a way station on the cross-country ski trail), a summer cottage (now the Upper Guest Cottage) and a boat house (demolished in 2018).

The property was acquired in 1951 as part of the federal program to develop Gatineau Park. On June 6, 1959, it became the official country residence of the Prime Minister of Canada.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 43

3.3.3 Present Condition

The Main Cottage, which has an API of 66 and is therefore considered a high priority building, is currently undergoing a major building envelope rehabilitation project that includes window replacement, the addition of wall insulation, rebuild of the two masonry chimneys, upgrades to the HVAC and fire suppression systems, and improvements to the service wing. The project is expected to be complete during the summer of 2021.

The residence was re-evaluated prior to the start of the project and an FCI of 0.27 was calculated (DFRP Rating = Poor). Following completion of the project the residence is expected to be in “Fair” condition as significant additional interior work has been deferred, along with other investments such a complete renovation of interior finishes, electrical system, plumbing and the hot water heating distribution system, which would all be required to reach a classification of “Good”.

HARRINGTON LAKE – YEAR AREA DM CRV FCI API LAC MOUSSEAU BUILT (M2) ($000) ($000) (DM/CRV) Main Cottage 1925 771 1,157 16,195 0.07 85 Upper Guest Cottage 1925 85 372 935 0.40 63 Horse & Cattle Barn 1900 177 245 1,503 0.16 55 Official Car Garage 1980 38 56 217 0.26 45 Garage & Shop 1925 77 98 216 0.45 35 Dairy House 1900 34 36 95 0.38 35 Change House 1960 23 82 133 0.61 33 Generator Shed 1980 18 7 154 0.05 30 Tool Shed 1960 19 26 53 0.49 30 Pump Shed 1970 30 32 85 0.38 30 Farmhouse 2019 450 0 2,700 0.00 15

Table 9: Summary of current condition of Harrington Lake site buildings

Prior to this current project, the last significant work was undertaken in 2005 and consisted of minor improvements to the electrical system, installation of a sprinkler system, reroofing, and rehabilitation of the sunroom. Due to budget and scheduling limitations, several deficiencies that needed to be addressed had to be deferred and were not completed.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 44

3.3.4 Historical Investments

Since 1988, development plans, supported by asset condition reports, for both the building and grounds have been completed and several upgrades have been made.

Projects such as the replacement of the septic tank, rehabilitation of the shoreline, an upgrade to potable water treatment systems, minor electrical system repairs, roof repairs and regular decorative upgrades to state and official areas have been completed as part of this renovation program. Below, a more complete list of the rehabilitation initiatives undertaken since 2005 to the Main Cottage, ancillary building(s), and grounds is shown.

ASSET ELEMENT MAJOR REHABILITATION PROJECTS Exterior Systems • Roof and eavestrough replacement (cedar shingles, heating cables and copper eavestrough and downpipes) • Select foundation damp proofing • Porch rehabilitation • Design for exterior envelope rehab (window restoration, walls/insulation, foundation damp proofing) Mechanical/Electrical • Chimney rehabilitation Systems • Minor electrical wiring replacement • Fire suppression and detection installation • Potable water treatment system upgrade Interior Architectural • New interior fire exit stairs (2nd floor to exterior) • Private area and state area decor upgrades • Sunroom replacement • UA strategy (complete investigation and research) Ancillary Buildings • Outbuildings study (Investigation and research on condition of Upper/Lower Guest Cottages, Staff Cottages and storage barns) • Demolition of the Lower Guest Cottage due to instability and health and safety • Caretaker’s House rehabilitation into the Farmhouse Infrastructure and • Underground electrical service (site distribution upgrade) Grounds • UA ramp and landscaping upgrades • Emergency generator replacement • Shoreline rehabilitation (naturalization of the shoreline, rehabilitation of docks, walkways, patios and beach area) • Replace septic system diverter box • Septic system reservoir replacement (including separation of water softening backwash from sanitary) Table 10: Past construction projects at Harrington Lake site buildings.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 45

Historical spending for the past 10 years at the entire site, including outbuildings, grounds, and infrastructure, is shown below.

FISCAL YEAR O & M CAPITAL TOTAL

($) ($) ($) 2010–2011 161,269 173,505 334,774 2011–2012 187,725 312,610 500,335 2012–2013 181,554 415,035 596,589 2013–2014 109,337 186,957 296,294 2014–2015 224,225 2,154 226,379 2015–2016 243,650 - 243,650 2016–2017 290,854 137,000 427,854 2017–2018 251,128 373,832 624,960 2018–2019 74,934 1,349,528 1,424,462 2019–2020 147,098 3,416,196 3,563,294 TOTAL ($) 1,871,774 6,366,817 8,238,591

Table 11: Historical capital and O&M spending at Harrington Lake site. Table does not include RCMP security improvements

3.3.5 Proposed Deferred Maintenance Investments

The Main Cottage is currently undergoing a major rehabilitation project which includes a complete building envelope rehabilitation, various upgrades to some of the building’s systems, and improvements to the service wing. It is expected to be completed during summer of 2021.

Following this project, the Main Cottage is expected to be in “Fair” condition. Additional capital investments will be required to complete the replacement of various interior finishes in poor condition, as well as the electrical system, plumbing and hot water heating distribution system.

Still outstanding are UA upgrades to the Main Cottage.

Because of its “Critical” condition, the Caretaker’s House was dismantled, and rebuilt into the Farmhouse at a new location on the property. The building includes many modern amenities and has a first floor that provides UA. Similarly, the Lower Guest Cottage was also in “Critical” condition. Due to the building’s deteriorated state and the limited options for rehabilitation, the building was demolished in 2018.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 46

3.3.6 Summary

The following dashboard highlights the performance gap between the NCC’s Management Principles and the current condition of the Main Cottage. Also shown is the deferred maintenance deficit and historical investments for the Main Cottage only.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 47

Capital 10- O&M 10- Year Year Average Average $636,682 $187,177

2% of CRV 2% of CRV $323,904 $323,904 O&M Funding Capital Funding 10-Year Average 10-Year Average

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 48

3.4 STORNOWAY

3.4.1 Background

Located at 541 Acacia Avenue in Ottawa, Ontario, Stornoway holds a FHBRO “Recognized” heritage designation and was built in 1913. The property comprises over 0.42 hectares (one acre) of grounds, one main building with 19 main rooms, hallways and washrooms covering approximately 883 m2 (9,500 ft2). The property also includes one secondary building, which is a two-car garage with a second storey loft and two-piece washroom.

The Main Residence is currently occupied by the Leader of the Official Opposition and family and is divided into private and state or official spaces. State areas are generally located on the first and third floors, with the private areas, consisting mostly of bedrooms and washrooms, located on the second floor. The residence functions primarily as a private residence but also hosts official events.

The residence is not open to the public.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 49

3.4.2 History

Stornoway was originally built for an Ottawa grocer in 1913–14. The house was designed by Allen Keefer, an important architect of the era. In 1923, it was purchased by Mr. And Mrs. Irvine Perley-Robertson, who in turn rented it to Crown Princess Juliana of the Netherlands during the Second World War.

In the late 1940s, a trust was set up to purchase and administer the running of the house and was funded by contributions from the public. The house was privately maintained for the Leaders of the Official Opposition until 1970 when the property was acquired by the Government of Canada and maintained by Public Works Canada.

Stornoway is a two-and-a-half storey house in rough-cast stucco. It is rectangular in plan with a small “L” to the rear, covered with a simple saddle-back roof with Bernese gables. The main facade is loosely symmetrical about a central doorway, to which an exterior foyer was added in 1983.

The house is laid out in a pinwheel plan about a large central hall with stairs and is situated behind heavy hedges on the grounds planted in a typical Rockcliffe manner. In addition to a breakfast room and family room, the house contains formal living and dining rooms.

Since 1987, development plans, supported by asset condition reports, for both the building and grounds have been completed and several upgrades have been made. Projects such as the installation of a high-efficiency boiler system and perimeter

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 50 lighting, exterior painting, roof replacement and minor foundation repairs, and some decorative upgrades to state areas have been completed as part of this renovation program.

3.4.3 Present Condition

The Main Residence has an FCI of 0.08 (DRFP Rating = Fair) and is considered a high priority building, with an API score of 63.

STORNOWAY YEAR BUILT AREA DM CRV FCI API (M2) ($000) ($000) (DM/CRV) Main Residence 1913 879 1,252 14,941 0.08 63 Garage 1914 101 154 861 0.18 40

Table 12: Summary of current condition of Stornoway site buildings

The Main Residence requires regular and ongoing maintenance. Currently, there are numerous issues that should be resolved in the residence, including the building envelope, fire alarm, electrical and heating and cooling systems. UA concerns include the ramp to the main entrance that does not meet barrier-free design, staired access to the second and third floors, as well as a stepped entrance to the sunroom.

Stornoway is used as a residence and is provided with adequate heating and cooling equipment that meets the Occupational Health and Safety Directive for Public Service employees. However, the building has no permanent air conditioning system; window air conditioners are run in every room in the summer, which is disruptive, inefficient and costly.

The age and condition of the electrical sub-panels and the associated wiring indicates that it should be upgraded; the plumbing system has failed on multiple occasions in recent years. Repairs and/or upgrades are complicated due to the presence of asbestos throughout many of the interior finishes.

3.4.4 Historical Investments

Since 1988, development plans, supported by asset condition reports, for both the building and grounds have been completed and several upgrades have been made.

Projects such as the installation of a high-efficiency boiler system and perimeter lighting, creation of a universally accessible washroom on the main floor, exterior painting, minor foundation repairs, rehabilitation work to the garage, roof replacement and chimneys repointing and repairs, and some decorative upgrades to state or official areas have been completed as part of this maintenance program.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 51

Below, a more comprehensive list of the rehabilitation initiatives undertaken since 2005 to the main building, ancillary building(s), and grounds is shown.

ASSET ELEMENT MAJOR REHABILITATION PROJECTS Exterior Systems • Front entrance stairs rehabilitation • Front façade storm water management • Backyard deck replacement • Exterior painting • Roof replacement & chimney repointing and repairs Mechanical/Electrical • Kitchen HVAC replacement Systems (once-through, water-cooled AC with DX condensing unit) • Electrical single line tracing • Replacement of heating hot water boilers • Replacement of main electrical switch • Replacement of outdoor electrical panel Interior Architectural • UA strategy (complete investigation and research) • UA washroom conversion (Main Floor) • Basement laundry room wall repairs Ancillary Buildings • Garage envelope rehabilitation (LCM upgrades to envelope and interior) • Garage roof replacement Infrastructure and • Upgrade to main electrical manhole Grounds • Asphalt paving • Exterior lighting Table 13: Summary of current condition of Stornoway site buildings

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 52

Historical spending for the past 10 years at the entire site, including outbuildings, grounds, and infrastructure, is shown below.

FISCAL YEAR O & M CAPITAL TOTAL

($) ($) ($) 2010–2011 86,230 - 86,230 2011–2012 116,785 149,533 266,318 2012–2013 101,021 189,843 290,864 2013–2014 105,983 59,950 165,933 2014–2015 54,715 17,838 72,553 2015–2016 75,577 147,381 222,958 2016–2017 71,378 0 71,378 2017–2018 89,037 0 89,037 2018–2019 45,665 84,511 130,176 2019–2020 38,663 2,297 40,960 TOTAL ($) 785,054 651,353 1,436,407

Table 14: Historical spending at Stornoway site

3.4.5 Proposed Deferred Maintenance Investments

The proposed investments in the property over the next years are grouped by building asset type. In general, it is proposed to leverage capital and O&M funding to improve assets that are in Fair-to-Poor condition.

Proposed capital and O&M projects include: • UA studies and upgrades; • the replacement of electrical wiring/panels; • upgrades to the fire alarm system; and • the replacement of hardwood flooring.

3.4.6 Summary

The following dashboard highlights the performance gap between the NCC’s Management Principles and the current condition of the Main Residence. Also shown is the deferred maintenance deficit and historical investments for the Main Residence only.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 53

O&M 10- Capital Year 10-Year Average Average $78,505 $65,135

2% of CRV 2% of CRV $298,826 $298,826 O&M Funding Capital Funding

10-Year Average 10-Year Average

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 54

3.5 THE FARM

3.5.1 Background

Located at 15 Barnes Road in Chelsea, QC lies the property known as The Farm. The residence, a former farmhouse, comprises more than 1.74 hectares (4 acres) of grounds, one main building with 11 rooms covering approximately 465 m² (5,000 ft²) plus seven outbuildings.

In June 1985, the farmhouse and barn were designated as “recognized” heritage buildings by FHBRO. Today, the historic significance of some of the interior features of the house, including ornamental plaster and woodwork, personally designed by Prime Minister William Lyon Mackenzie King, have been recognized. Some of Mackenzie King’s personal possessions are still retained in the house. For example, the dining room contains the mahogany Willingdon Table that was presented to him by the Governor General of Canada, Viscount Willingdon, in 1931.

The Main Residence is currently occupied by the Speaker of the House of Commons and family and is divided into private and state or official spaces. State areas are

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 55 generally located on the first floor with the private areas, consisting mostly of bedrooms and washrooms, located on the second floor. The residence functions primarily as a private residence but does host official events.

The residence is not open to the public.

3.5.2 History

The original farmhouse was built about 1891 by the Fleury brothers and was typical of the pioneer homesteads in the Gatineau region. It was a simple one and one-half storey frame building with gables and bay windows facing south. Like most houses of the era, it lacked central heating and plumbing.

Prime Minister William Lyon Mackenzie King purchased the house, and the two-mile stretch of land between Mountain and Barnes roads, for $4,000 on April 12, 1927. In 1935, Mr. MacKenzie King converted the house into a year-round residence. Renovations were fairly modest. Two new L-shaped wings were added—one to the south for living and reception rooms and one to the east for a kitchen and servants’ quarters. The character, materials and proportions of the original building were left intact.

The Farm became one of Prime Minister Mackenzie King’s favourite residences and in the last 15 years of his life he conducted much of the nation’s business there. He bequeathed this extensive property to the Government of Canada upon his death in 1950.

The Farm was apparently offered as a home to Prime Minister Louis St. Laurent and Mr. George Drew, Leader of the Official Opposition, neither of whom chose to occupy it. In 1954, The Farm was rented to the Honourable L. René Beaudoin, then Speaker of the House of Commons, for the sum of $350.00 per year. The practice of renting The Farm to the Speaker of the House of Commons for use as a summer residence continued into the 1970s.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 56

3.5.3 Present Condition

The Main Residence has an FCI of 0.17 (DFRP Rating = Poor) and is considered a high priority building, with an API score of 61. Given its current condition, work required consists of regular and ongoing maintenance.

THE FARM – YEAR AREA DM CRV FCI API KINGSMERE BUILT (m²) ($000) ($000) (DM/CRV) Main Residence 1891 464 1,340 7,896 0.17 61 Recreational Building 1891 66 332 561 0.59 47 Generator Shed 15 19 86 0.23 33 Storage Barn 1891 80 35 680 0.05 28 Gazebo 15 11 86 0.13 23 Irrigation System 10 4 85 0.05 22 Pump House Wood Shed 1891 25 83 143 0.58 18 Garage 2005 48 50 271 0.18 15

Table 15: Summary of current condition of The Farm site buildings

Currently, there are numerous issues that need to be resolved in the residence, including the building envelope, fire alarm, and electrical systems. UA concerns include staired access to the 2nd floor, as well as a stepped entrance to the sunroom.

The Farm is used as a residence and is provided with adequate heating and cooling equipment to meet the Occupational Health and Safety Directive for Public Service employees.

The age and condition of the electrical sub-panels and the associated wiring indicates that it should be upgraded; the plumbing system has failed on multiple occasions in recent years. Repairs and/or upgrades are complicated due to the presence of asbestos throughout many of the interior finishes.

3.5.4 Historical Investments

Since 1988, development plans, supported by asset condition reports, for both the building and grounds have been completed and several upgrades have been made.

Projects such as the replacement of the septic field, window rehabilitation, the upgrade to potable water treatment systems, roof repairs, and regular decorative upgrades to State areas have been completed as part of this renovation program. Below, a more comprehensive list of the rehabilitation initiatives undertaken since 2005 to the main building, ancillary building(s), and grounds is shown.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 57

ASSET ELEMENT MAJOR REHABILITATION PROJECTS Exterior Systems • Window rehabilitation (rehabilitation of all windows, storms and screens) • Roof replacement • Pantry exterior siding and Mechanical/Electric • Potable water (upgrade of the well water supply to the house) al Systems • HVAC upgrades (replace aging furnaces and humidifiers with high efficiency system) • Basement sanitary line replacement • Electrical single line tracing • Fire suppression system reservoir and pump replacement Interior • Main floor hardwood refinishing Architectural • Chimney rehabilitation (all four chimneys) • UA washroom conversion (Main Floor) Ancillary Buildings • Barn | Stabilization (new foundation, new doors, rehabilitated cladding) • Garage | Exterior paint Infrastructure and • Dry stone wall rehab Grounds • Terrace rehabilitation (restoration of flagstone patio) • Well pumps (replacement of Pump No.1 and Pump No.2) • Septic field replacement • Underground oil tank decommissioning • Flagpole new underground electrical cables and fixtures | $2.5K Table 16: Past construction projects at The Farm site buildings

Historical spending for the past 10 years at the entire site, including outbuildings, grounds, and infrastructure, is shown below.

FISCAL YEAR O & M CAPITAL TOTAL

($) ($) ($) 2010–2011 99,803 0 99,803 2011–2012 199,339 460,367 659,706 2012–2013 116,102 61,106 177,208 2013–2014 154,651 89,911 244,562 2014–2015 246,336 173 246,509 2015–2016 96,391 0 96,391 2016–2017 75,371 0 75,371 2017–2018 80,690 3,679 84,369 2018–2019 67,725 190,937 258,662 2019–2020 115,357 0 115,357 TOTAL ($) 1,251,765 806,173 2,057,938

Table 17: Historical spending at The Farm site

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 58

3.5.5 Proposed Deferred Maintenance Investments

The proposed investments into the property over the next 10 years are grouped by building asset type. In general, it is proposed to leverage capital and O&M funding to improve assets that are in Fair-to-Poor condition.

Proposed capital and O&M projects include: • UA studies and upgrades; • The replacement of some of the roof coverings; • the replacement of the foundation and repair to exterior walls; • the replacement of the porch; • the replacement of air conditioning equipment; • the replacement of electrical systems and wiring; • upgrades to the fire alarm system; and, • the replacement of hardwood flooring.

3.5.6 Summary

The following dashboard highlights the performance gap between the NCC’s Management Principles and the current condition of the Main Residence. Also shown is the deferred maintenance deficit and historical investments for the Main Residence only.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 59

O&M 10- Capital 10- Year Year Average Average $80,617

$125,177

2% of CRV 2% of CRV $157,916 $157,916 O&M Funding Capital Funding 10-Year Average 10-Year Average

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 60

3.6 7 RIDEAU GATE

3.6.1 Background

Located between 24 Sussex and Rideau Hall lies 7 Rideau Gate. This building holds a FHBRO “Recognized” heritage designation, comprises a little over 0.2 hectares (0.49 acres) of grounds and one main building covering approximately 797.6 m² (8,566 ft²).

The primary vocation of this Official Residence at 7 Rideau Gate is as a guest house for state and official visitors.

The residence is not open to the public.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 61

3.6.2 History

Designed by architect Alan Keefer, this 790 square-metre private home was built in 1862 and was obtained by the Crown in 1966 as lodgings for visiting dignitaries who are guests of Canada. The Victorian architecture home was restored and renovated in 1989 to reinstate historical features as well as to upgrade the guest facilities.

For its first 70 years, the house remained Victorian in character. In 1947, new owners modernized the house by stripping away the and entirely replacing the dark Victorian decor inside. The last private owner removed the roof walk, added exterior shutters, and built a sunroom on the east side of the original building and a new wing on the west side.

In 1988, the NCC took over responsibility for all Official Residences in Canada’s Capital Region. It fully restored and refurnished the house, with the help of the Canadiana Fund, which solicits financial contributions as well as donations of heritage art and furniture. Today, much of the original character and spirit of this historic old house has been recaptured. As well, thanks to the generosity of former

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 62 owners, a number of family pieces came back to their old home at 7 Rideau Gate. The house has been decorated and furnished to create a distinctively Canadian experience for visitors and guests.

3.6.3 Present Condition

The Main Residence has an FCI of 0.1 (DFRP Rating = Fair) and is considered a high priority building, with an API score of 52. Given its current condition, work required consists of regular and ongoing maintenance.

7 RIDEAU GATE YEAR AREA DM CRV FCI API BUILT (M2) ($000) ($000) (DM/CRV) Main Residence 1862 798 1,410 13,564 0.10 52 Table 18: Summary of current condition of 7 Rideau Gate

There are numerous issues that should be resolved in the residence, including UA, the building envelope and specifically the windows, fire alarm, and heating systems.

UA concerns include that a visitor would be required to climb two (2) steps to reach the front entrance, a step to reach the sunroom, and it is necessary to climb stairs to reach the second and third floor levels. Furthermore, the sole washroom for visitors is located beneath the main staircase and is not universally accessible. To meet the requirements for a visitable dwelling, the front entrance would need to be modified and a washroom with a clear route to the toilet at least 920 mm wide would need to be provided.

As 7 Rideau Gate is primarily used to accommodate visiting dignitaries for overnight stays, consideration should be given to providing a universally accessible bedroom on the ground floor or providing barrier-free access to the second level.

7 Rideau Gate is provided with adequate heating and cooling equipment to meet the Occupational Health and Safety Directive for Public Service employees. The building was recently upgraded with central air conditioning. Previously, window air conditioners were active in every room in the summer, which was disruptive, inefficient and costly. The age and condition of the hot water boilers and accessories indicate that these systems should be upgraded; the plumbing system has failed on multiple occasions in recent years. Repairs and/or upgrades are complicated due to the presence of asbestos in some of the interior finishes.

In general, the home is occupied on an irregular basis, but used frequently by for different events and functions. In between stays by visiting dignitaries, the home is used frequently for government lunches, dinners, and meetings. This limits repair work to small windows of opportunity during most of the year and requires discussions with federal partners when completing more significant repairs.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 63

3.6.4 Historical Investments

Since 1988, development plans, supported by asset condition reports, for both the building and grounds have been completed and several upgrades have been made.

Projects such as the replacement of the commercial kitchen, provision of air conditioning, and foundation damp proofing have been completed as part of this renovation program. Below, a more comprehensive list of the rehabilitation initiatives undertaken since 2005 to the main building, ancillary building(s), and grounds is shown.

ASSET ELEMENT MAJOR REHABILITATION PROJECTS Exterior Systems • Foundation damp proofing and drainage (NE wall) • Exterior sunroom wall mortar and stairs repairs and replacement • Roof top railing replacement

Mechanical/Electrical • HVAC upgrades Systems • Upgrades to hot water heating system • Provision of central air conditioning • Replacement of domestic hot water system Interior Architectural • Kitchen renovations (new floor, new gas range, ventilation upgrades, new counters, repaint) • Sunroom exterior double doors replacement • Kitchen stainless steel cabinetry • Basement storage room upgrade

Ancillary Buildings • Not applicable

Infrastructure and • Landscape upgrades (rehab of the main patio) Grounds Table 19: Past construction projects at 7 Rideau Gate

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 64

Historical spending for the past 10 years at the entire site, including grounds and infrastructure, is shown below.

FISCAL YEAR O & M CAPITAL TOTAL

($) ($) ($) 2010–2011 55,258 0 55,258 2011–2012 58,386 0 58,386 2012–2013 93,786 89,063 182,849 2013–2014 91,130 122,770 213,900 2014–2015 66,813 500,110 566,923 2015–2016 52,498 18,565 71,063 2016–2017 79,717 3,108 82,825 2017–2018 59,899 0 59,899 2018–2019 30,617 0 30,617 2019–2020 70,759 0 70,759 TOTAL ($) 658,863 733,616 1,392,479

Table 20: Historical spending at 7 Rideau Gate site 3.6.5 Proposed Deferred Maintenance Investments

The proposed investments into the property over the next 10 years are grouped by building asset type. In general, it is proposed to leverage capital and O&M funding to improve assets that are in Fair-to-Poor condition.

Proposed capital and O&M projects include: • UA studies and upgrades; • the replacement of the heritage windows; • the replacement of carpeted surfaces; • the replacement of the hot water boilers and pumps; • the replacement of domestic hot water heater; • the replacement of the fire alarm system; • the repair of roof heat tracing systems; • upgrades to the lighting and fire alarm system; and • the addition of an emergency power generator.

3.6.6 Summary

The following dashboard highlights the performance gap between the NCC’s Management Principles and the current condition of the Main Residence. Also shown is the deferred maintenance deficit and historical investments for the Main Residence only.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 65

O&M 10- Capital Year 10-Year Average Average $65,886 $73,362

2% of CRV 2% of CRV $271,272 $271,272 O&M Funding Capital Funding 10-Year Average 10-Year Average

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 66

4 Summary and Next Steps

Around the world and across Canada, other public institutions have experienced and are experiencing similar challenges with deferred maintenance of built infrastructure and built heritage due to underfunding. The situation may not be unique except that many of the assets in the Official Residences Portfolio, in the fiduciary stewardship of the National Capital Commission, have reached a critical point.

The Official Residences in Canada’s Capital Region do not include many of the typical modern amenities many of us take for granted and fall short of current standards for livability. Nonetheless, they have provided the backdrop to our collective history and are home to the stories of generations of leaders who have helped shaped Canada. That makes them national treasures, heritage assets that we can adapt to assist today’s leaders in their official duties and provide a safe home for their households while they are in office. To successfully fulfill this mandate, understanding the true condition of these assets allows the NCC to make needed strategic decisions. This includes investing in high priority buildings, to align the Portfolio with its core mission and re-evaluating certain ancillary buildings to better align with long-term objectives.

The NCC receives $66M in ongoing operating appropriations and $23M in annual parliamentary appropriations for capital expenditures. With only $3M in capital dedicated to the Official Residences, the NCC’s annual budget falls significantly short and has for decades. Furthermore, because of the age, condition and heritage significance of the Official Residences, the investments required for these properties represent a disproportionate amount of the NCC’s already limited resources.

The 2018 Report clearly indicated that without appropriate and sustainable funding, the deferred maintenance deficit would continue to grow, and more assets would resemble 24 Sussex Drive. As forecasted, even with the demolition and rehabilitation of some of the assets in Critical condition, the Portfolio’s deferred maintenance has continued to increase and the FCI worsened.

A one-time injection of $175M in funding over 10 years to address the deferred maintenance deficit, support UA and sustainability investments and an increase in annual appropriations to $26.1M would provide a sustainable source of funds that would be used to conserve the built heritage of national interest under the NCC’s stewardship.

However, funding is not the only requirement. Predictable and extended access to the buildings is key. Without both a sustainable source of funds and access to the residences to undertake regular repair, maintenance and scheduled capital improvements, the NCC will not be able to fulfill its mandate with respect to the Official Residences.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 67

Appendix A – Official Leaders and Residents of the Official Residences

Rideau Hall

1867–1868 The Viscount Monck 1868–1872 Lord Lisgar 1872–1878 The Earl of Dufferin 1878–1883 The Marquess of Lorne 1883–1888 The Marquess of Lansdowne 1888–1893 Lord Stanley 1893–1898 The Earl of Aberdeen 1898–1904 The Earl of Minto 1904–1911 Earl Grey 1911–1916 The Duke of Connaught 1916–1921 The Duke of Devonshire 1921–1926 Lord Byng of Vimy 1926–1931 The Viscount Willingdon 1931–1935 The Earl of Bessborough 1935–1940 Lord Tweedsmuir 1940–1946 The Earl of Athlone 1946–1952 The Viscount Alexander 1952–1959 The Right Honourable 1959–1967 General The Right Honourable George P. Vanier 1967–1974 The Right Honourable 1974–1979 The Right Honourable Jules Léger 1979–1984 The Right Honourable Edward Scheyer 1984–1990 The Right Honourable Jeanne Sauvé 1990–1995 The Right Honourable Ramon John Hnatyshyn 1995–1999 The Right Honourable Roméo LeBlanc 1999–2005 The Right Honourable 2005–2010 The Right Honourable Michaël Jean 2010–2017 The Right Honourable 2017–Present Vacant

24 Sussex

1950–1957 Louis St. Laurent 1957–1963 1963–1968 Lester B. Pearson 1968–1979 1979–1980

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 68

1980–1984 Pierre Trudeau 1984 1984–1993 1993–1993 1993–2003 Jean Chrétien 2003–2006 Paul Martin 2006–2015 2015–Present ** **Currently residing in Rideau Cottage

Harrington Lake

1950–1957 Louis St. Laurent 1957–1963 John Diefenbaker 1963–1968 Lester B. Pearson 1968–1979 Pierre Trudeau 1979–1980 Joe Clark 1980–1984 Pierre Trudeau 1984 John Turner 1984–1993 Brian Mulroney 1993–1993 Kim Campbell 1993–2003 Jean Chrétien 2003–2006 Paul Martin 2006–2015 Stephen Harper 2015–Present Justin Trudeau

Stornoway

1950–1956 George Drew 1956–1957 John George Diefenbaker 1958–1963 Lester B. Pearson 1963–1967 John George Diefenbaker 1967–1976 1976–1979 Joe Clark 1979–1980 Pierre Elliott Trudeau 1980-1983 Joe Clark 1983–1984 Brian Mulroney 1984–1990 John Napier Turner 1990–1993 Jean Chrétien 1993–1996 1997–2000

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 69

2000–2001 2001–2002 John Reynolds 2002–2006 Stephen Harper 2006–2008 Stéphane Dion 2008–2011 2011–2011 2011–2012 2012–2015 Thomas Mulcair 2015–2017 2017–2020 2020–Present Erin O’Toole

The Farm

1953–1957 Louis-René Beaudoin 1957–1962 Roland Michener 1962–1963 Marcel Lambert 1963–1966 Alan Macnaughton 1966–1974 Lucien Lamoureux 1974–1979 James Alexander Jerome 1980–1984 Jeanne Sauvé 1984–1986 John William Bosley 1986–1994 John Allen Fraser 1994–2001 Gilbert Parent 2001–2011 Peter Miliken 2011–2015 Andrew Scheer 2015–2019 Geoff Regan 2019–Present Anthony Rota

7 Rideau Gate

The objective of providing the residence at 7 Rideau Gate is to create “a home away from home” for visiting dignitaries in an environment of elegance and comfort. A number of Governors General stay at 7 Rideau Gate before their official mandate begins as Governor General.

Notable guests:

− Princess Margriet of the Netherlands − Palestinian President Mahmoud Abbas − Majesties King Hussein and Queen Noor of Jordan − His Highness Prince Aga Khan − Prince Takamado and Princess Takamado of Japan − Princess Astrid and Prince Lorenz from Belgium

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 70

− General Perez, President of Pakistan − President Hamid Karzai from Afghanistan − Princess Sarah Ferguson from England − Israel President Shimon Peres

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 71

Appendix B — Official Residence Management Principles

▪ That all the residences are divided into State Areas and Private Areas (allowing for decor planning and expenditure guidelines) ▪ That all grounds are separated into specific landscape zones (allowing for use, maintenance and intervention guidelines) ▪ That State Area decor be maintained for a generation before complete redecoration occurs. ▪ That the heritage characteristics of the properties, as defined by FHBRO, be maintained. ▪ That all residences have a plan in place covering preferred development strategies for buildings, grounds and infrastructure. ▪ That all residences have a Life Cycle Management Plan in place. ▪ That all residences have an Emergency Response Plan in place. ▪ That all residences must be operational at all times (unless specific arrangements are otherwise made). ▪ That all grounds and residences be universally accessible (front door access and guest floor access guidelines). ▪ That all building systems are modernized and upgraded to current standards. ▪ That all residences provide for fire detection and suppression systems (allowing for the evacuation of the building and the protection of assets). ▪ That all residences have backup systems to permit the residence to function in case of regular infrastructure outage (e.g., that all residences have an emergency power source available to address life safety, security and functional requirements in case of a power outage). ▪ That all residences are furnished and equipped at all times. ▪ That the contents of all residences be inventoried, inspected and maintained regularly. ▪ That although measures are taken at all residences to protect the state collections and furnishings, the residences cannot be rendered to museum standard. ▪ That environmentally friendly practices are used in managing the property.

Source: Official Residences in the National Capital Region, Life Cycle Management Program 1999–2009.

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 72

Official Residences of Canada: Asset Portfolio Condition Report (Apr. 2021) | Page 73